With the revision, term deposit between 180-210 days less than Rs. 1 crore now earn 7 per cent against 6.80 per cent earlier.

Last week, RBI raised short-term lending (repo) rate by 0.25 per cent to 7.75 per cent, making cost of fund expensive for the banks.

At the same time, the RBI lowered marginal standing facility (MSF) rate by a similar margin to 8.75 per cent.

Accordingly, the bank rate was reduced to 8.75 per cent with immediate effect. Consequently, the reverse repo rate is adjusted upward to 6.75 per cent.

The RBI has left unchanged other rates such as the cash reserve ratio at 4 per cent and the mandatory holdings in government securities and other liquid assets as a solvency measure – Statutory Liquidity Ratio (SLR) – at 23 per cent.

SBI had last raised base rate by 0.10 per cent to 9.80 per cent in September this year.